The Regional Greenhouse Gas Initiative (RGGI)

RGGI States

The Regional Greenhouse Gas Initiative (RGGI) is a cooperative initiative involving ten Northeast and Mid-Atlantic states to limit green house gas emissions.

The RGGI uses auctions to raise funds for programs promoting clean energy and energy efficiency throughout the Northeast and Mid-Atlantic United States.

The signatory states have agreed to “…cap CO₂ emissions from the power sector, and then require a 10 percent reduction in these emissions by 2018.”

To reduce emissions of greenhouse gases, the RGGI participating states are using a market-based cap-and-trade approach that includes:

• Establishing a multi-state CO₂ emissions budget (cap) that will decrease gradually until it is 10 percent lower than at the start
• Requiring electric power generator to hold allowances covering their emissions of CO₂
• Providing a market-based emissions auction and trading system where electric power generators can buy, sell and trade CO₂ emissions allowances
• Using the proceeds of allowance auctions to support low-carbon-intensity solutions, including energy efficiency and clean renewable energy, such as solar and wind power
• Employing offsets (greenhouse gas emissions reduction or sequestration projects at sources beyond the electricity sector) to help companies meet their compliance obligation

The states include:

1. Connecticut
2. Delaware
3. Maine
4. Maryland
5. Massachusetts
6. New Hampshire
7. New Jersey
8. New York
9. Rhode Island
10. Vermont

Source: http://www.rggi.org/about (Reliability 7 )